by Tom Foremski for SiliconValleyWatcher.com

If you haven’t noticed by now, I’m a huge fan of Silicon Valley and I will tell you why in future articles. And I’m confident I will convince you why Silicon Valley is important and will continue to be so for many more years.

I like talking about Silicon Valley and I am often told that Silicon Valley won’t recover its importance, and is likely doomed to a slow and irreversible decline in its fortunes. Most of the arguments boil down to this: Silicon Valley will be unable to compete with the innovation that now happens all over the world; China, India, Canada, Israel, France, Poland, Taiwan -- innovation is happening everywhere and Silicon Valley will become a one-line historical footnote.

Yes, innovation happens all over the world. But why should that be a problem for Silicon Valley?

Let’s take a look at Las Vegas. With the boom in Indian Casinos, the majority of Americans now live within a three-hour drive to a place where they can legally gamble. That’s a bad scenario for Las Vegas. I would not be an investor with that kind of trend in play. Yet the last time I was there, it was bigger and brasher and richer than ever. There were no tumbleweeds in the streets.

This is what brand building is all about -— Las Vegas scrambled up the stack and became the premier gambling brand. It captured the "thought leadership" on all things gambling.

The regional casinos did not become competitors, instead, they acted as evangelists. The Indian casinos introduced millions of people to gambling and educated them on how to gamble.

And that is what will happen to Silicon Valley. Innovation around the world won’t harm Silicon Valley —- it will serve to enhance its leadership reputation.

Plus, Silicon Valley is going to be a leader in a very specific form of innovation -- I'll tell you about it next week (or maybe sooner if you call me.)

See also by Tom Foremski: Silicon Valley is back baby...dotcom

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